Use the Excel Template and the following information to answer the next three questions: Peterson Packaging Inc. does not currently pay dividends. The company will start with a $0.50 dividend at the end of year three and grow it by 10% for each of the next seven years until it nearly reaches $1.00. After seven years of growth, it will fix its dividend at $1.00 forever. The required return on the stock is 15%.

1. (EXCEL TEMPLATE) What is the current stock price? Use the NPV function.

2. (EXCEL TEMPLATE) What is the expected stock price in years 1-10? Use the NPV function.

3. (EXCEL TEMPLATE) Calculate the dividend yield and capital gains yield that an investor should expect for each year.